On January 1,20X9 Pathlon Company Acquired 30 Percent of the Common

question 16

Multiple Choice

On January 1,20X9 Pathlon Company acquired 30 percent of the common stock of Sopteron Corporation,at underlying book value.For the same year,Sopteron reported net income of $55,000,which includes a gain from discontinued operations of $40,000.It did not pay any dividends during the year.By what amount would Pathlon's investment in Sopteron Corporation increase for the year,if Pathlon used the equity method?

• A)$0
• B)$16,500
• C)$4,500
• D)$12,000

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